Note 26 - Business Segment Information

3 Months Ended

Sep. 25, 2011

Segment Reporting Disclosure [Text Block]

26. Business Segment Information

Each reportable segment derives its revenues as follows:

· The polyester segment manufactures recycled Chip, POY, textured, dyed, twisted and beamed yarns with sales to other yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, automotive upholstery, hosiery, home furnishings, industrial and other end-use markets.  The polyester segment consists of manufacturing operations in the U.S. and El Salvador.

· The nylon segment manufactures textured nylon and covered spandex yarns with sales to knitters and weavers that produce fabric for the apparel, hosiery, sock and other end-use markets.  The nylon segment consists of manufacturing operations in the U.S. and Colombia.

· The international segment’s products include textured polyester and various types of resale yarns. The international segment sells its yarns to knitters and weavers that produce fabric for the apparel, automotive upholstery, home furnishings, industrial and other end-use markets primarily in the South American and Asian regions.  The segment includes manufacturing and sales offices in Brazil and a sales office in China.

The Company evaluates the operating performance of its segments based upon Segment Adjusted Profit which is defined as segment gross profit plus segment depreciation and amortization less segment SG&A.  Segment operating profit represents segment net sales less cost of sales, restructuring and impairment charges and SG&A expenses.  The accounting policies for the segments are consistent with the Company’s accounting policies.  Intersegment sales are accounted for at current market prices.  Selected financial information for the Polyester, Nylon and International segments is presented below:

	For the Three Months Ended September 25, 2011
	Polyester			Nylon		International		Total
Net sales to external customers	$	92,528		$	40,961	$	37,524	$	171,013
Intersegment sales		453			8		—		461
Segment adjusted profit		2,426			3,024		2,564		8,014
Segment operating profit (loss)		(2,373	)		2,241		1,591		1,459
Segment depreciation and amortization		4,799			783		973		6,555
Segment assets		224,740			82,276		98,783		405,799
Capital expenditures		189			71		805		1,065

	For the Three Months Ended September 26, 2010
	Polyester		Nylon		International		Total
Net sales to external customers	$	85,587	$	44,173	$	45,332	$	175,092
Intersegment sales		835		489		398		1,722
Segment adjusted profit		5,705		4,767		6,050		16,522
Segment operating profit		612		3,913		5,148		9,673
Segment depreciation and amortization		4,730		854		902		6,486
Restructuring charges		363		—		—		363
Segment assets		207,303		86,548		118,430		412,281
Capital expenditures		3,043		371		1,923		5,337

The $57 and $158 difference between total capital expenditures for long-lived assets and the segment total for the three months ended September 25, 2011 and September 26, 2010, respectively, relates to various, unallocated corporate projects.

Reconciliations from segment data to consolidated reporting data are as follows:

	For the Three Months Ended
	September 25, 2011			September 26, 2010
Segment operating profit	$	1,459		$	9,673
(Benefit) provision for bad debts		205			(41	)
Other operating (income) expense, net		(41	)		243
Operating income		1,295			9,471
Interest income		(647	)		(743	)
Interest expense		4,380			5,269
Loss on extinguishment of debt		462			1,144
Equity in earnings of unconsolidated affiliates		(3,459	)		(8,951	)
Income before income taxes	$	559		$	12,752

	For the Three Months Ended
	September 25, 2011		September 26, 2010
Segment depreciation and amortization	$	6,555		6,486
Depreciation included in other operating (income) expense		6		3
Amortization included in interest expense		221		254
Consolidated depreciation and amortization	$	6,782	$	6,743

	September 25, 2011		September 26, 2010
Segment assets	$	405,799	$	412,281
Other current corporate assets		4,080		2,429
Unallocated corporate PP&E		9,854		10,248
Other non-current assets		3,272		3,870
Investments in unconsolidated affiliates		92,340		80,494
Consolidated assets	$	515,345	$	509,322